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← The 1974 Kissinger Saudi Deal
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Question
What fundamental problem did the 1974 Kissinger-Saudi arrangement solve for dollar hegemony?
1
It gave the US exclusive rights to Saudi oil production, ensuring energy security for the US economy
2
It provided the US Treasury with a guaranteed buyer for government debt, eliminating dependence on domestic bond markets
3
It replaced the gold-dollar peg with an oil-dollar peg, creating structural global demand for dollars independent of gold reserves
4
It established fixed oil prices in dollars, preventing oil price volatility from affecting dollar purchasing power
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